WUHAN, China, Aug. 2 /PRNewswire-Asia/ -- Wuhan General Group (China), Inc. (Nasdaq: WUHN) ("Wuhan General" or the "Company"), a leading manufacturer of industrial blowers and turbines in China, operating through its subsidiaries, Wuhan Blower Co., Ltd. ("Wuhan Blower"), Wuhan Generating Equipment Co., Ltd. ("Wuhan Generating") and Wuhan Sungreen Environment Protection Equipment Co., Ltd. ("Wuhan Sungreen"), today announced that on July 26, 2010, its blowers passed the type inspection for subway systems. The inspection, provided by the National Center for Quality Supervision and Test of Fire Fighting Equipment, is an indispensable step for companies aspiring to qualify as suppliers for subway construction projects.
China's subway construction is undergoing rapid development. According to the National Development and Reform Commission, China will spend more than $146 billion to triple the size of its subway system over the next five years. This development has increased demand for various components and services required for the construction and maintenance of subway systems, including blowers for subway tunnels. In 2009, Wuhan General, in cooperation with Huazhong University of Science and Technology ("HUST"), built a testing center, including a model of a subway tunnel, in order to conduct research and development work. The Company's subway tunnel ventilation blowers were shown at the 10th China International Electronic Products Exhibition in September 2009 and won the "Special Contribution Award."
The Company has thus far developed three types of blowers which passed the type inspection: DIF-18 Type Axial Fan for Subway Tunnel Ventilation, DTF(R)-20 Type Reversible Axial Fan for Subway Tunnel Ventilation and SDS(R)-11.2 Type Dual-directional Jet Fan. These blowers can be used in subway tunnels which are currently greatly built in many cities in China, including Wuhan.
"Wuhan General has advanced technologies and sophisticated equipment, as well as a strong capability for independent innovation," commented Professor Wang Jun, dean of the fluid engineering department of HUST's School of Energy and Power Engineering. "Our solid cooperative relationship with Wuhan General has become one of our most important commitments for practical studies."
"Passing this mandatory type inspection is a key step in the development of our blowers for subway systems and a significant milestone for Wuhan Blower and Wuhan General. This milestone well embodies our core competence," said Mr. Chen Juntao, General Manager of Wuhan Blower. "After obtaining this approval, we are more confident to win bids for subway projects in the future, not only in Wuhan City, but also in emerging cities all over in China."
About Wuhan General Group (China), Inc.
Through its subsidiaries, Wuhan Blower, Wuhan Generating and Wuhan Sungreen, Wuhan General is a leading manufacturer of industrial blowers and turbines in China and the Company is based in Wuhan, Hubei Province, China. Wuhan Blower is a China-based manufacturer of industrial blowers that are principal components of steam-driven electrical power generation plants. Wuhan Generating is a China-based manufacturer of industrial steam and water turbines used for electricity generation in coal, oil, nuclear and hydroelectric power plants. Wuhan Sungreen manufactures silencers, connectors and other general parts for industrial blowers and electrical equipment and produces general machinery equipment. The Company's primary customers are from the iron and steel, power generation, petrochemical and other industries. Led by a strong management team, Wuhan General is well recognized for its technological sophistication and quality construction of blowers and turbines. For more information, please visit http://www.wuhangeneral.com .
Safe Harbor Statement
Certain statements in this press release, including statements regarding our first quarter 2010 financial results, future revenue (including by segment), net income and sales, our liquidity position, growth strategy, future demand for our products, the fulfillment of our backlog orders, improvement in the collection of our accounts receivable, our ability to control costs and our ability to handle larger projects may be forward-looking in nature or "forward-looking statements," as defined by the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks and uncertainties, including all business uncertainties relating to vulnerability of our business to general economic downturn, operating in the People's Republic of China (PRC) generally and the potential for changes in the laws of the PRC that affect our operations, our failure to meet or timely meet contractual performance standards and schedules, our ability to comply with financial covenants in our loan agreement with Standard Chartered and other factors that may cause actual results to be materially different from those described in such forward-looking statements. Certain of these risks and uncertainties are or will be described in greater detail in our filings with the Securities and Exchange Commission. These forward-looking statements are based on Wuhan General's current expectations and beliefs concerning future developments and their potential effects on the Company. There can be no assurance that future developments affecting Wuhan General will be those anticipated by the Company. Wuhan General undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
For more information, please contact:
Wuhan General Group (China), Inc.
Mr. Philip Lo, CFO
Phone: +86-27-5970-0067 (China)
Email: philip.lo@wuhangeneral.com
Web: http://www.wuhangeneral.com
CCG Investor Relations Inc.
Mr. Crocker Coulson, President
Phone: +1-646-213-1915 (New York)
Email: crocker.coulson@ccgir.com
Web: http://www.ccgirasia.com
